Question
Campbell Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 339,500 pounds
Campbell Chemical Company makes three products, B7, K6, and X9, which are joint products from the same materials. In a standard batch of 339,500 pounds of raw materials, the company generates 75,300 pounds of B7, 162,100 pounds of K6, and 102,100 pounds of X9. A standard batch costs $2,037,000 to produce. The sales prices per pound are $5, $15, and $20 for B7, K6, and X9, respectively.
Required
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Allocate the joint product cost among the three final products using weight as the allocation base.
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Allocate the joint product cost among the three final products using market value as the allocation base
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